〈The Standard, May 11, 2024〉Since cooling measures to curb speculation in the property sector were lifted in February, there has been a notable surge in the number of transactions in the secondary market.

Many tenants see the scrapping as a sign that the market is returning to stability and opting to purchase instead of remaining to rent their homes.

That trend is showing up at property agencies, which have reported a lot of transactions where tenants are considering transitioning to purchasing properties.

〈Hong Kong Business, May 10, 2024〉Hong Kong’s economic growth is expected to moderate to 2.5% in 2024, following a 3.2% gain in 2023, according to S&P Global.

“Hong Kong's economic recovery should continue this year, following the 2.7% growth in the first three months, aided by the pickup in population size and further normalisation of cross-border travel,” the report said.

“The recovery in fiscal performance, however, is slowed by the weak real estate market. In the face of declining prices, the government has recently reduced land sales. This has led to a more gradual revenue growth and a larger fiscal deficit,” it noted.

〈Asian Post, May 9, 2024〉Persistently high interest rates and growing vacancy rates are putting pressure on commercial real estate issuers in Hong Kong, according to Fitch Ratings.

Despite these challenges, valuation and funding risks remain relatively low for rated entities.

Under Fitch's stress scenario, which assumes a steady Fed funds rate of 5.5% throughout 2024 and 2025, the average interest coverage ratios for rated issuers could weaken significantly by 2025 compared to previous years.

〈Hong Kong Business, May 8, 2024〉Overall high street rents rose by 1.8% QoQ in 1Q24, with a 2.6% increase in Tsim Sha Tsui, driven by a surge in tourists, Colliers reported.

However, the constrained purchasing power hampered retail sales recovery, showing only a 1.4% YoY increase in the initial two months of 2024.

Tourist arrivals recorded in January and February 2024 reached 7.8 million, whilst departures were 15 million.

To promote tourism recovery, the government has launched various campaigns and events, such as the inclusion of Xi’an and Qingdao in the Individual Visit Scheme (IVS), which will likely increase inbound tourism and retail sales in the coming quarters

〈CNN Business, May 7, 2024〉The Biden administration added 37 Chinese entities to a trade restriction list on Thursday, including some for allegedly supporting the suspected spy balloon that flew over the United States last year, heightening tensions between Beijing and Washington.

The Commerce Department also said it was adding some units of China Electronics Technology Group to the list for allegedly trying to obtain American technology to support China’s quantum technology capabilities, “which has serious ramifications for U.S. national security” due to their military applications.

Media have said state-owned China Electronics Technology Group is a top military equipment supplier.